The local benchmark, Nifty again witnessed blood bath on Monday, losing its crucial 9,200 level amid COVID-19 outbreak. Market made a gap down opening, as Crisil’s report that credit pressures have intensified on India Inc as the coronavirus spread deepens in India and across the globe. It warned that Airlines, hotels, malls, multiplexes and restaurants will be the worst hit businesses. Index continued its dull trade, as traders were concerned as foreign portfolio investors (FPIs) have withdrawn a whopping Rs 37,976 crore on a net basis from the Indian markets in March so far amid the coronavirus pandemic triggering fears of a global recession. Traders failed to take any sense of relief from Commerce Ministry’s data report showing that India's exports rose for the first time in seven months in February growing by 2.91 percent to $27.65 billion. Besides, imports too grew by 2.48 percent to $37.5 billion, leaving a trade deficit of $9.85 billion as against $9.72 billion in February 2019. Last leg of trade dragged market the market lowest point to close the session with cut of over seven percent, even as India’s Wholesale price index (WPI) inflation eased sharply to 2.26 percent for the month of February, 2020 as compared to 3.1 percent for the previous month and 2.93 percent during the corresponding month of the previous year.
All of the NSE sectoral indices ended in red. The top gainers from the F&O segment were Yes Bank, Motherson Sumi Systems and Hindustan Petroleum Corporation. On the other hand, the top losers were RBL Bank, IndusInd Bank and Piramal Enterprises. In the index option segment, maximum OI continues to be seen in the 11,700 -12,200 calls and 9,300 - 9,700 puts indicating this is the trading range expectation.
India Volatility Index (VIX), a gauge for market’s short term expectation of volatility increased by 14.38% and reached 58.87. The 50 share Nifty down by 757.80 points or 7.61% to settle at 9,197.40.
Nifty February 2020 futures closed at 9095.75 (LTP) on Monday, at a discount of 101.65 points over spot closing of 9197.40, while Nifty March 2020 futures ended at 9135.85 (LTP), at a discount of 61.55 points over spot closing. Nifty February futures saw an addition of 2.87 million (mn) units, taking the total outstanding open interest (OI) to 18.32 mn units. The near month derivatives contract will expire on February 27, 2020 (Provisional).
From the most active contracts, Reliance Industries February 2020 futures traded at a discount of 5.60 points at 1006.60 (LTP) compared with spot closing of 1012.20. The numbers of contracts traded were 48,707 (Provisional).
ICICI Bank February 2020 futures traded at a discount of 3.25 points at 397.85 (LTP) compared with spot closing of 401.10. The numbers of contracts traded were 46,298 (Provisional).
State Bank Of India February 2020 futures traded at a discount of 1.35 points at 222.00 (LTP) compared with spot closing of 223.35. The numbers of contracts traded were 43,561 (Provisional).
HDFC Bank February 2020 futures traded at a discount of 10.05 points at 991.20 (LTP) compared with spot closing of 1001.25. The numbers of contracts traded were 41,704 (Provisional).
Indusind Bank February 2020 futures traded at a discount of 0.45 points at 655.80 (LTP) compared with spot closing of 656.25. The numbers of contracts traded were 39,526 (Provisional).
Among, Nifty calls, 10000 SP from the March month expiry was the most active call with a addition of 0.35 million open interests. Among Nifty puts, 9000 SP from the March month expiry was the most active put with an contraction of 0.15million open interests. The maximum OI outstanding for Calls was at 12000 SP (2.26 mn) and that for Puts was at 9500 SP (2.21 mn). The respective Support and Resistance levels of Nifty are: Resistance 9,478.03 -- Pivot Point 9,321.57 -- Support -- 9,040.93.
The Nifty Put Call Ratio (PCR) finally stood at 1.01 for March month contract. The top five scrips with highest PCR on Cummins India (1.31), Mahindra & Mahindra Fin. Services (1.13), Interglobe Aviation (1.11), Siemens (1.05) and Just Dial (1.02).
Among most active underlying, State Bank Of India witnessed an addition of 1,00,89,000 million units of Open Interest in the February month futures contract, followed by Reliance Industries witnessing an addition of 31,73,500 million units of Open Interest in the February month contract, ICICI Bank witnessed an addition of 81,26,250 million units of Open Interest in the February month contract, HDFC Bank witnessed an addition of 28,65,500 million units of Open Interest in the February month contract and Bajaj Finance witnessed an addition of 4,25,750 million units of Open Interest in the February month future contract (Provisional).
